Caffeine was never meant to be just another Twitch clone. Founded in 2016 by former Apple TV designers Ben Keighran and Sam Roberts, the platform promised a fresh, social-first approach to live streaming. It sought to eliminate the toxicity that plagued many online communities and focus on real-time, low-latency engagement between streamers and their audiences. But after eight years, nearly $150 million in funding, and multiple high-profile partnerships, Caffeine shut down its service on June 26, 2024, citing an inability to achieve profitability. So what happened?
A Platform Built on Real-Time Interaction
Before Caffeine attracted major partners or celebrity creators, its founding team focused on building a technical and UX framework they believed could reset the expectations of live video. The company emphasized ultra-low-latency streaming, with an interface designed to integrate audience interaction directly into the video experience rather than pushing engagement into side panels or chat modules. The goal was to make conversations feel immediate, visible, and participatory. Unlike Twitch, which had grown around gaming culture and algorithmic visibility, Caffeine positioned itself as a broader social broadcasting network, targeting sports, music, and entertainment from day one. Its early development centered on design simplicity, real-time communication, and reducing friction between creator and viewer.
Betting Big with Fox
The turning point came in September 2018, when 21st Century Fox invested $100 million into Caffeine, creating a joint venture called Caffeine Studios. Fox chairman Lachlan Murdoch joined the board, and the platform became co-owned by New Fox, the company holding assets not acquired by Disney. This backing wasn’t just financial. With Fox Sports in the mix, Caffeine gained access to exclusive live event expertise and sports content. Murdoch stated that combining Caffeine’s platform with Fox Sports’ programming would help deliver compelling experiences in esports, video gaming, and entertainment. He believed they were building something special for fans of live social streaming.
Caffeine CEO Ben Keighran expressed similar optimism at the time. He said their goal was to bring the world together around friends and live broadcasts. With strong community support and content partnerships, he felt the vision was ambitious but achievable.
A Different Kind of Streamer
Caffeine distinguished itself from rivals by focusing less on gaming and more on culture. It signed names like NFL player JuJu Smith-Schuster, rapper Offset, and hosted events featuring Ric Flair and Slim Jxmmi during Super Bowl weekend. The goal was not to dominate esports but to appeal to fans across music, sports, and entertainment.
The platform avoided traditional advertising, opting instead for monetization models like virtual gifting, pay-per-view events, and subscriptions. Caffeine also hid viewer counts from the public, a move meant to reduce social pressure and increase authenticity in live interactions. Only the broadcaster could see viewership numbers, encouraging creators to focus on community rather than popularity metrics.
Flying Under the Radar With 61 Million Users
Despite relatively low mainstream visibility, Caffeine expanded quietly. By 2019, it had about 70 employees and had raised $146 million from investors, including Andreessen Horowitz and Greylock Partners. Mobile analytics firm Apptopia noted that Caffeine had accumulated over 140,000 iOS downloads by early 2019. Yet, by 2024, the company claimed it had grown to 61 million monthly users and 4 million daily users, with distribution deals across more than 200 sports organizations.
Caffeine secured streaming rights for niche and emerging sports like the World Surf League, Women’s National Football Conference, and LIV Golf. It became the home of first-round LIV Golf coverage, which the league said attracted a younger, more diverse audience than traditional broadcasters.
When Vision Isn’t Enough
On June 26, 2024, Caffeine announced on its website that it was shutting down. The team explained that although the service had achieved several milestones along the way, it was still not profitable and had decided to end the platform as they figured out their next steps.
Despite strong partnerships, growth in user base, and experimentation with multiple business models, Caffeine could not sustain itself. Its refusal to implement ads and lack of monetization tools for streamers may have contributed to this outcome. Even promising partnerships like the one with LIV Golf ended within months.
Caffeine’s Quiet Legacy in the Streaming World
Caffeine may have fallen short of profitability, but it left behind lessons for the live streaming industry. It proved that viewers appreciated low-latency interaction, a positive community atmosphere, and a blend of content that moved beyond hardcore gaming. Its innovations in platform design and creator incentives, while not scalable enough for long-term survival, remain relevant in discussions around streamer-first ecosystems.
Caffeine showed that even in a crowded field dominated by tech giants, there was room for new ideas. Its story is a reminder that vision alone is not enough. Ultimately, product, audience, and monetization must align. But for a few years, Caffeine offered a glimpse into what a more human-centered live-streaming experience could look like.
